Putin: Russia must use sanctions to achieve new development horizons

April 16, 2015. Russian President Vladimir Putin, foreground, answers questions from the public during the annual Direct Line with Vladimir Putin special broadcast live on Russian television and radio (RIA Novosti / Alexey Druzhinin) / RIA Novosti

Russia’s economy sustained a blow from Western sanctions and remained strong; it should use them to achieve "new development frontiers,” according to President Vladimir Putin.

Anti-Russia sanctions imposed by Western countries are not very
efficient as their pressure is useless and senseless, Putin said
during his annual question and answer session Thursday. The
President stressed that Russia should use the current situation
and focus on new horizons of development.

Pointing to the issue of import substitution, Vladimir Putin said
the country is forced to quickly push ahead with it considering
the sanctions.

"Domestic production, food security are highly important
things, and we will have them on our market," the Russian
President said talking about the importance of import
substitution in agriculture. “Earlier the Russian agrarian
market was occupied by (domestic) producers, now it has been
cleared.”

Putin also thinks it is inappropriate to compare the sanctions’
situation of Russia with that in Iran. "Russia is not Iran,
our economy is bigger, and much more diversified than in Iran,
and we are not conducting an energy resource policy as the
Iranian government conducts," he explained. Moreover, the
power industry is much more a market in Russia than in other oil
and gas-producing countries, according to the Russian President.

Improving situation

On August 6 last year the Russian President banned agricultural
products from the EU, USA, Australia, Norway and Canada,
responding to a new round of anti-Russia sanctions taken by the
Western countries over the crisis in Ukraine. Putin then
described the political tools of pressure being used against the
Russian economy as unacceptable and added that they go against
international rules.

A day later Prime Minister Dmitry Medvedev signed a decree banning the imports of beef,
pork, poultry meat, fish, cheese, milk, vegetables and fruit from
those countries for a year. The embargo was said would boost
domestic agriculture and become a unique opportunity to develop
import substitution.

Meanwhile, in March the Kremlin spokesperson said Russia might
loosen its embargo on food from some EU
countries such as Greece by allowing agricultural products to be
processed within the country.

Greek PM Alexis Tsipras’ visit to Moscow last week to meet Vladimir Putin has
led to a number of proposals that could end the embargo on food
products from the country. Greece has been hit especially hard by
the food ban, as more than 40 percent of Greek exports are to
Russia. Russia is also considering rescinding food sanctions against Cyprus and
Hungary.